CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FX levels to watch – EUR/USD, GBP/USD, AUD/USD

AUD/USD looks for another potential move lower following yesterday’s gains, while EUR/USD consolidation and a GBP/USD retracement could set us up for decent moves in Europe.

IG Analyst

Publication date : 2017-05-02T09:44:06+0100

Euro notes

Source: Bloomberg

EUR/USD consolidating after recent rally

EUR/USD is trading within a triangle formation following on from last week’s French election-fueled rally. The break through $1.0906 provided us with a confirmation of the wider uptrend, and as such even if we did sell off from here, it would look like simply being a correction within that trend.

For a bearish short-term view to come into play, we would need an hourly close below $1.0851. Conversely, an hourly close above $1.0950 would point towards another leg higher within the current uptrend.

EUR/USD

EUR/USD

EUR/USD

GBP/USD in short-term pullback

GBP/USD has weakened at the beginning of the week, with price almost back to the 50% Fibonacci level.

The key here is that until we see price break below $1.2756, it looks as if this current weakness will be a short-term move before we push higher once more.

As such, the 61.8-76.4% retracement zone ($1.2805-$1.2861) looks particularly interesting for longs.

GBP/USD

GBP/USD

GBP/USD

AUD/USD turns lower from resistance confluence

AUD/USD rallied into trendline resistance yesterday, as the pair looked to retrace some of the losses seen last week. With price having rallied into trendline resistance, there is a good chance we will see this pair turn lower once more from here.

Given that this move came into the 76.4%, we have seen a nice deep retracement. Essentially, while we remain below $0.7584 it looks likely we will turn lower once more to continue the downtrend in place since the March top.

AUD/USD

AUD/USD

AUD/USD

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